FHFA Raises Conforming Loan Limits to $806,500 for 2025

The Federal Housing Finance Agency (FHFA) today announced that the maximum baseline conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2025 will rise to $806,500 — an increase of $39,950, or 5.2%, from 2024.

The conforming loan limits are required by the Housing and Economic Recovery Act to reflect the percentage change in the average U.S. home price during the most recent 12-month or four-quarter period ending before the time of determining the annual adjustment. 

In 2025, the conforming loan limit will rise 5.21% because FHFA has determined that the average U.S. home value increased by that amount between the third quarters of 2023 and 2024.

Higher loan limits will be in effect in higher-cost areas as well. The new ceiling loan limit in high-cost markets will be $1,209,750, which is 150% of $806,500. The previous ceiling was $1,149,825.

In its news release, FHFA said that because of rising home values, the ceiling loan limits will be higher in all but six U.S. counties or county equivalents in 2025.

Fannie Mae and Freddie Mac cannot buy mortgages above the conforming loan limit. Any mortgage over that amount is considered a jumbo loan and subject to higher interest rates.

The increase in loan limits for 2025 means that more mortgages will be bought by Fannie and Freddie, which will make it easier for home buyers to qualify for and close their loans. For home builders, it means their clients will find more mortgage options outside of the world of jumbo loans, and it could offer an opportunity for home builders to examine their pricing.

View a list of the 2025 maximum conforming loan limits for all counties and county-equivalent areas in the country.